The United States Securities and Exchange Commission (SEC) and Binance.US will engage in intense negotiations to strike a deal that will prevent a complete freeze of Binance.US assets, media reports said.
The riveting saga unfolded on June 14, as Bloomberg reported that U.S. District Judge Amy Berman Jackson had stepped in, ordering the two entities to seek a compromise through a magistrate judge. This unprecedented move aims to safeguard customer funds while allowing Binance.US to continue its operations, avoiding the catastrophic consequences of a complete shutdown.
During a riveting hearing on June 13, Judge Jackson emphasized the far-reaching implications of a total closure, expressing concerns about the potential impact on both the company and the broader digital asset markets. Determined to find a solution that balances the interests of all parties involved, Judge Jackson deferred her final decision on the SEC’s action for a momentary restraining order until the negotiations between the SEC and Binance.US conclude under the guidance of the magistrate.
Excitingly, an update on the progress of these high-stakes negotiations has been designed for the close of trade hours on June 15, leaving the world eagerly anticipating the outcome of this unprecedented legal battle.
Judge Jackson offered a glimmer of hope by remarking that the SEC and Binance.US appear to be in relatively close proximity when it comes to reaching an agreement. These encouraging words raise optimism that a compromise may indeed be within reach, despite the fierce conflict of interests that has been brewing between the two parties in recent weeks.
Former SEC enforcement attorney John Read Stark, a prominent figure in the cryptosphere, shared his insights on Twitter ahead of the hearing, shedding light on the tension and divergence of objectives that prevailed. However, Stark astutely noted that even in the midst of seemingly irreconcilable differences, the court has the power to forge a compromise and discover common ground.
This high-profile legal drama was set in motion when the SEC lodged an emergency motion for a temporary restraining order against Binance.US on June 6. The SEC accused Changpeng “CZ” Zhao, the CEO of Binance, of maintaining access to Binance.US customer funds. Shockingly, the controller alleged that Zhao had orchestrated the transfer of $12 billion in Binance’s funds through a controlled entity known as Merit Peak.
